Credit Scoring Model In SME Credit Risk Management

Traditional banks usually combine experience model with financial analysis of the enterprise to control and manage the credit risk. Always the financial situation of enterprises plays a key role, so that generally only large companies are qualified; however it’s difficult for SME because of the Information asymmetry. With the coming Internet finance and big data era, traditional risk management has been unable to meet the increasing demand for corporate finance; especially the rapid development of SMEs makes more urgent financing needs. Credit scoring model is to use all available data and assess the risk and financing capacity of SMEs correctly, can also manage the credit risk of SMEs in scientific way and give fair financing environment for SMEs.Based on the current status of the domestic SME financing and the concept of credit risk models, and compared with traditional banking risk management approach, this paper discusses the risk management framework and basic methods of internet banking. Meanwhile, it also explains the sources and importance of the data, as well as credit score policy application and risk management models development process. Specifically, data analysis, and statistical models (logistic regression) are used to predict credit risk of SMEs, and then proposes several scientific, fair credit risk management policies and strategies, it plays certain significance to control risk, improve efficiency and optimize risk management processes.